KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
USA - NASDAQ:KRT - US48563L1017 - Common Stock
25.345 USD
-0.17 (-0.65%)
We assign a fundamental rating of 6 out of 10 to KRT. KRT was compared to 49 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making KRT a very profitable company, without any liquidiy or solvency issues. KRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KRT had positive earnings in the past year.
KRT had a positive operating cash flow in the past year.
In the past 5 years KRT has always been profitable.
Each year in the past 5 years KRT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.99%, KRT is doing good in the industry, outperforming 79.59% of the companies in the same industry.
KRT has a Return On Equity of 20.57%. This is in the better half of the industry: KRT outperforms 75.51% of its industry peers.
With an excellent Return On Invested Capital value of 13.04%, KRT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRT is above the industry average of 10.04%.
The 3 year average ROIC (12.65%) for KRT is below the current ROIC(13.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROIC | 13.04% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
1.3 Margins
With a decent Profit Margin value of 7.25%, KRT is doing good in the industry, outperforming 73.47% of the companies in the same industry.
KRT's Profit Margin has improved in the last couple of years.
KRT has a Operating Margin of 9.70%. This is in the better half of the industry: KRT outperforms 69.39% of its industry peers.
KRT's Operating Margin has improved in the last couple of years.
The Gross Margin of KRT (39.18%) is better than 71.43% of its industry peers.
In the last couple of years the Gross Margin of KRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% |
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KRT is creating some value.
Compared to 1 year ago, KRT has more shares outstanding
Compared to 5 years ago, KRT has more shares outstanding
Compared to 1 year ago, KRT has an improved debt to assets ratio.
2.2 Solvency
KRT has an Altman-Z score of 4.40. This indicates that KRT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.40, KRT is doing good in the industry, outperforming 79.59% of the companies in the same industry.
KRT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.08, KRT belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
KRT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
KRT has a Debt to Equity ratio of 0.30. This is in the better half of the industry: KRT outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.43
WACC9.11%
2.3 Liquidity
A Current Ratio of 2.68 indicates that KRT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.68, KRT is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that KRT should not have too much problems paying its short term obligations.
The Quick ratio of KRT (1.40) is better than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.75% over the past year.
The Earnings Per Share has been growing by 75.29% on average over the past years. This is a very strong growth
KRT shows a small growth in Revenue. In the last year, the Revenue has grown by 8.00%.
The Revenue has been growing by 13.45% on average over the past years. This is quite good.
EPS 1Y (TTM)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
3.2 Future
The Earnings Per Share is expected to grow by 7.51% on average over the next years.
Based on estimates for the next years, KRT will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KRT is valuated correctly with a Price/Earnings ratio of 15.27.
77.55% of the companies in the same industry are more expensive than KRT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KRT to the average of the S&P500 Index (27.77), we can say KRT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.79, KRT is valued correctly.
Based on the Price/Forward Earnings ratio, KRT is valued a bit cheaper than 73.47% of the companies in the same industry.
KRT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRT indicates a rather cheap valuation: KRT is cheaper than 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KRT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
The excellent profitability rating of KRT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y5.55%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.19%, KRT is a good candidate for dividend investing.
KRT's Dividend Yield is rather good when compared to the industry average which is at 1.81. KRT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
5.2 History
KRT has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
KRT pays out 105.27% of its income as dividend. This is not a sustainable payout ratio.
DP105.27%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
NASDAQ:KRT (10/22/2025, 10:32:36 AM)
25.345
-0.17 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners33.37%
Inst Owner Change0.37%
Ins Owners57.52%
Ins Owner Change-14.94%
Market Cap509.18M
Revenue(TTM)442.03M
Net Income(TTM)32.05M
Analysts74.29
Price Target32.13 (26.77%)
Short Float %1.46%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP105.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.92%
Min EPS beat(2)-7.48%
Max EPS beat(2)15.32%
EPS beat(4)1
Avg EPS beat(4)-5.33%
Min EPS beat(4)-19.5%
Max EPS beat(4)15.32%
EPS beat(8)2
Avg EPS beat(8)-10.83%
EPS beat(12)4
Avg EPS beat(12)6.12%
EPS beat(16)6
Avg EPS beat(16)3.74%
Revenue beat(2)2
Avg Revenue beat(2)0.37%
Min Revenue beat(2)0.21%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.49%
Revenue beat(12)2
Avg Revenue beat(12)-2.21%
Revenue beat(16)3
Avg Revenue beat(16)-2.06%
PT rev (1m)0%
PT rev (3m)-10%
EPS NQ rev (1m)5.48%
EPS NQ rev (3m)-16.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.79 | ||
| P/S | 1.15 | ||
| P/FCF | 11.47 | ||
| P/OCF | 11.26 | ||
| P/B | 3.27 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)1.66
EY6.55%
EPS(NY)1.84
Fwd EY7.25%
FCF(TTM)2.21
FCFY8.72%
OCF(TTM)2.25
OCFY8.88%
SpS22
BVpS7.76
TBVpS7.57
PEG (NY)N/A
PEG (5Y)0.2
Graham Number17.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.99% | ||
| ROE | 20.57% | ||
| ROCE | 17.05% | ||
| ROIC | 13.04% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.19% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.25% | ||
| GM | 39.18% | ||
| FCFM | 10.05% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
ROICexc(3y)15.6%
ROICexc(5y)14.51%
ROICexgc(3y)15.92%
ROICexgc(5y)14.83%
ROCE(3y)16.55%
ROCE(5y)16.56%
ROICexgc growth 3Y16.55%
ROICexgc growth 5Y29.66%
ROICexc growth 3Y16.65%
ROICexc growth 5Y29.13%
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 4% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 22.11 | ||
| Cash Conversion | 72.12% | ||
| Profit Quality | 138.56% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.4 |
F-Score7
WACC9.11%
ROIC/WACC1.43
Cap/Depr(3y)16.22%
Cap/Depr(5y)87%
Cap/Sales(3y)0.52%
Cap/Sales(5y)2.54%
Profit Quality(3y)142.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.75%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%16.33%
EPS Next Y-2.67%
EPS Next 2Y5.55%
EPS Next 3Y7.51%
EPS Next 5YN/A
Revenue 1Y (TTM)8%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%10.11%
Revenue Next Year9.49%
Revenue Next 2Y8.08%
Revenue Next 3Y7.92%
Revenue Next 5Y5.98%
EBIT growth 1Y13.6%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year32.94%
EBIT Next 3Y16.51%
EBIT Next 5YN/A
FCF growth 1Y-32.1%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-33.79%
OCF growth 3Y76.82%
OCF growth 5YN/A